Evaluate Amazon's competitive strategy

Achievement:
Top e-commerce:
In the field of online retail today, few businesses in the world have such remarkable success
as Amazon (USA), that is, the revenue is always going up from the first day of the
establishment until now. What sets Amazon apart and helps them gain recognition from
global markets as "the best online vendors" is Amazon's customer focus and correct
prediction. future shopping trends. Amazon is referring to e-commerce. As one of the world's
first successful e-commerce businesses and then having a hard time surviving the dot-com
bubble burst, Amazon is still the number 1 e-commerce site for users in many countries. that
this company participates in.

Companies with the highest market capitalization in the U.S

Kindle e-book
Amazon's biggest "invention" is the Kindle e-book, which hit the market in November 2007
and is also a source of huge revenue for Amazon. A dazzling milestone in Amazon's run was
2012 when it grossed an impressive $ 61 billion in profits and expanded its staff to 97,000.
This is the "sweet fruit" Amazon enjoys from its customer-centric principle. The first Kindle
launched in November 2007, this e-reader sold about 250,000 units and made 10% of
Amazon's book sales. With the arrival of Kindle, Amazon quickly dominates 95% of the e-
book market in the US with a profit of more than 1 billion USD / year and growth of 200% /
year. With the Kindle, Amazon has knocked Sony out of the field explored by the Japanese
giant. The Kindle machines can be considered as a bright starting point for Amazon in the
move to hardware. Combining low-cost hardware devices and a giant, easy-to-use online
book market, the Kindle helped Amazon smash Sony's ebook efforts and at the same time
push back the content revolution brought by the iPad.

What makes Kindle so successful?

First, Amazon has chosen a very clear goal to invest in development and thereby minimize
the selling price to the user.
Next, the Kindle is "single" but does its only job at a very good quality: the e-link screen
allows for comfortable reading, the battery is in weeks, the ability to sync via the cloud helps.
you download and copybooks easily without a USB. Those who have used the Kindle
Keyboard will probably remember the ability to send a mail with PDF or epub attachments to
the Kindle address: the attached book will automatically be converted to a compatible
format. According to IDC estimates, the number of Kindle Fire devices sold in the first
quarter reached 4.7 million units, 1 million higher than iPad sales in the first quarter. Of
course, that comparison is somewhat lame, because the iPad starts at $ 500 and the Kindle
Fire sells for a loss of $ 200.
However, this is an extremely correct strategy of Amazon, because the Kindle Fire is sold to
stimulate the consumption of digital content as well as the shopping experience on Amazon.
Market research conducted by Chitika Insights in 2013 showed that the Kindle Fire's market
share increased by 3%, reaching 7.51% of the market share, taking 2nd place during the
same period. By the end of Q1 / 2016, according to IDC statistics, Amazon is still ranked
third in the world in tablet sales, behind only Apple and Samsung. Amazon is considered a
pioneer in the popularization of the tablet: so far, the Fire Tablet starts from just $ 50.
Besides, it is impossible to ignore the cloud service business that was "fired" for the first
time 12 years ago and is now in the process of bringing Amazon $ 10 billion / year in
revenue for Amazon. Amazon's cloud platform, Amazon Web Service has come a long way
while Google and Microsoft have struggled to "follow". As of Q1 / 2016, this company is
holding more than 30% market share with 57% growth compared to the previous year.
Meanwhile, all three companies Microsoft, IBM, and Google together also account for just
over 20% market share. Amazon has made a respectable record in the electronic technology
market.

Sales between Amazon and Alibaba

2. Limit
Amazon.com Inc reported on July 27, 2017, that retail sales increased, coupled with a
decline in profits from expanding investments in new types of shopping, as well as
accelerating growth into new another country in the world.
However, Amazon's quarterly profit fell 77%. Even in the latest quarter, this online retail
group could lose up to 400 million USD in profit. The report above reflects Amazon's huge
profits but also forecasts that the group will invest more to maintain its dominance in the
industry. In terms of Amazon's tablet lineup, Amazon's tablets use a custom Android
operating system. It is suitable for content mining on Amazon but does not have access to
the Google Play app store.

Although Amazon has its app store with lots of good software, people hardly have the
opportunity to enjoy apps that are familiar to them, such as Instagram, Google Maps,
YouTube (although still accessible via the web). Chrome browser or Firefox, Gmail, Dropbox
... Besides, in the long run, the Kindle Fire will not be as cheap as the original price. In other
words, any transaction made via Amazon will partially support the price of the Kindle Fire.
Not to mention, every tablet sold is attached with an advertisement right on the Home page.
Users have to spend 15 USD if they want to remove this ad. That small amount will also
cause the product to cost over the $ 199 threshold that Amazon set. Successful in e-
commerce, but Amazon is not strong at making hardware, and especially in smartphones.
Born in the fans' expectations, the Fire Phone quickly became a historic failure when it did
not achieve sales as expected, if not heavy, making the company record the loss. losses
amounted to 170 million USD based on the financial report at the end of 2014.